A COUNCIL-owned residential care home in Long Eaton is to close.
Southlands, in Main Street, will shut because carrying out repairs would not be cost-effective, according to Derbyshire County Council.
Its 19 residents will be offered places at Lacemaker Court, in Tamworth Road, which is set to open next year.
The £10 million development will be a mix of extra care apartments and residential care.
Southland's residents will all be assessed to determine what type of care accommodation would best suit their needs.
Around 40 jobs at Southlands are now at risk of redundancy.
Councillor Clare Neill, cabinet member for adult social care, said the council would seek to find all staff roles either at Lacemaker or other care homes.
She said: "We explored all the possible options for Southlands and believe the decision to close it next year is the right one.
"We know this is an anxious time for residents and their families but we will support them and keep them informed all the way.
"When the time comes to move we will do all we can to make this happen as smoothly as possible."
The decision was made at a county council meeting yesterday.
Cabinet members also agreed to accept a £2.5m grant to fix more potholes in Derbyshire. The grant comes with various conditions.
